Ignoring the government and foreign sectors, there is an unplanned decrease in inventories of $200 billion at the current level of real national income of $12 trillion. From this information, we know that
A) saving equals $200 billion.
B) consumption expenditures equal $12 trillion less saving less $200 billion.
C) planned investment is $200 billion more than planned saving.
D) planned investment is $200 billion less than planned saving.
Ans: C) planned investment is $200 billion more than planned saving.
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What is an economic market?
What will be an ideal response?
For most producing firms:
A. marginal cost rises as output is carried to a certain level, and then begins to decline. B. total costs rise as output is carried to a certain level, and then begin to decline. C. average total costs decline as output is carried to a certain level, and then begin to rise. D. average total costs rise as output is carried to a certain level, and then begin to decline.